BMW wants to charge clients R250 per month for existing features. What do you think of this?
Category News
A recent move by Germany's premium car manufacturer, BMW, has sparked controversy among their customers and the public. They announced in a July press release that a subscription-based payment scheme would be implemented to accommodate several features already installed in their vehicles.
Among these include adaptive cruise control, high-beam assist, and heated seat pads (specifically for R250 a month). Even though the hardware for these features is already fitted in the vehicle, they installed a block to these features behind a paywall. The features, or systems, will then reactivate once a monthly microtransaction has been paid.
Image Source: CarBuzz.com
BMW owners who already pay a premium price for their vehicles are angered by the fact that said hardware is already pre-installed in the car. They would now be actively disabled by software blocks integrated into BMW's onboard computer system.
BMW's response to the uproar
BMW quickly responded to the uproar in a subsequent press release stating that part of this move is to streamline the manufacturing process. They point out that rather than tailor-making individual vehicles that come with or without these features, it is far more cost-effective for them to have these features already built-in regardless of what the customer pre-selected.
They further went on to state that so far, the subscription model for heated seats was only being trialed in South Korea. It was expected to roll out within the next couple of months to Japan, The United Kingdom, France, Germany, The United States, Brazil, and South Africa (the countries where their cars are the most popular) but BMW has since set an indefinite time frame.
Vehicle services as a subscription have been around for a decade
Software as a Service (SAAS) is not a unique concept to BMW. Other manufacturers such as Tesla, Mercedes and Nissan have had subscription-based services embedded into their systems for quite some time. Services such as Apple Carplay and Spotify require an additional charge due to third parties. Whereas other BMW-specific services include the ability to record and upload camera footage, track vehicle status, and even download engine sound packages.
However, these "features'' are universally accepted almost the same way we pay for Netflix or DSTV subscriptions. They are not seen as built-in or physical hardware. Such as the option to heat your car seat.
Drivers are now seeking hacks
Since subscription-based models have been around for some time, hackers and tech-savvy owners are likely to use these backdoor walkarounds. But hacking into a BMW is like breaking into Fort Knox. The software doesn't present a one size fits all solution and many avenues one can take are sometimes embedded into regional settings.
Image Source: TheVerge.com
For example - during the Apple Carplay controversy of 2018, BMW charged owners almost R500 a month to listen to wireless music. US-based hackers would have to leverage a system within the Federal Supply Classification code embedded in the onboard computer. They would then use the codes to enable several software features not listed in their vehicles, to the chagrin of BMW.
It's understandable if that sounds confusing on its own. As of writing this, no one has yet to hack into BMW iDrive 8 and unlock their heated seats. But since the uproar, the process of cracking the code is likely accelerated as more and more people attempt to undermine what they deem as a tasteless move to squeeze more revenue out of customers.
A measured decision by BMW?
BMW's response has merit. It is cheaper to install features into a car as standard rather than offering optional extras. Electric windows have become more standardised across all vehicles. But having to pay an additional monthly charge to wind them down has never been floated.
The fundamental issue lies within the fact that added physical features are being sold as service subscriptions. Rather than simply offering a system prebuilt into the car's standard price, they opted to charge a monthly service over and above the final cost of the vehicle.
Being one of the world's most recognisable brands has its perks. In a preview of results the manufacturer presented at its AGM in 2021, BMW's financial year-end profits (net) jumped to 12.46 billion euros, or roughly R21 Trillion, from just 3.86 billion euros in 2020. Albeit the year of the worldwide lockdown.
Despite 2020 being a tough year for business, BMW has bounced back. So the decision to charge people for heated seats comes across as baffling and a bridge too far for many. Regardless of their motivation, BMW has since put this particular feature on hold.
One cannot say for certain whether this is due to the decision being unfeasible, the level of the backlash they received, or both. But it seems BMW will not be implementing this gimmick any time soon.
Rather invest in property! If you are looking to buy or sell your home contact one of our Real Estate Property Practitioners, follow the link: https://www.homesofdistinction.co.za/agents/
Homes of Distinction CC holds a Fidelity Fund Certificate issued by the Property Practitioners Regulatory Authority.
Author: Lv Digital
